Every six to 12 months I will check-in on marketplaces that have easily comparable home types. The apples-to-apples comparison helps to showcase growth or deceleration in certain areas and is helpful to study on occasion.
One of my favorite markets to stop-by is the North Redondo submarket of Golden Hills. More specifically, “tall & skinny” homes within the Golden Hills area.
Thanks to the pandemic driving all sorts of different blogs and data in 2020, I have failed to cover the “tall & skinny” market of late. The last time I wrote about the submarket was in June of 2019 and you can see a link to that post below.
I will be taking some of that data and layering over 2020 numbers into 2021.
Furthermore, if you are not familiar with Redondo Beach’s sub-market, Golden Hills, or tall & skinny details…please read the beginning of the 2019 blog post for more information and helpful links.
Golden Hills Tall & Skinny
The Golden Hills sub-market is a majority of tall & skinny homes.
What makes a tall and skinny? Well, the lot size is typically only 2,500 square feet and strictly 25 feet wide. The homes have no where to go but up, while maintaining a skinny profile.
The housing stock is generally a bit newer than the pre-war 50s and 60s homes we are used to seeing in the South Bay, with many of the full size options built in the 80s and 90s. Today, the new construction in the area is granted a third story, in some cases, and can reach 2,500+ square feet.
This marketplace has seen unstoppable growth since the Great Recession, up about 100% since the market bottoms a decade ago.
If you thought that a lack of backyard space might stunt its price growth during the Coronavirus pandemic, then you are in for a surprise.
With its proximity to the beach, great schools, and affordability…the Golden Hills tall and skinny market remains unstoppable with continued predictable upward growth. It is truly amazing.
Standard Tall & Skinny Price Growth
Similar to my last blog in 2019, my definition remains the same, the standard tall and skinny existing home is one that is between 1,700 and 1,900 square feet with three bedrooms in clean condition.
Below, you will see past years’ performance with updates for 2020 sales to show you the continued upward trend in price.
2017 Example Sales
- $1,150,000 Sale – 1546 Steinhart Avenue
- $1,175,000 Sale – 1738 Havemeyer Lane
- $1,189,000 Sale – 1636 Morgan Lane
2018 Example Sales
- $1,205,000 Sale – 1630 Haynes Lane
- $1,224,000 Sale – 1640 Steinhart Avenue (my listing and sale)
- $1,245,000 Sale – 1809 Goodman Avenue
2019 Example Sales
- $1,225,000 Sale – 1610 Stanford Avenue
- $1,275,000 Sale – 1618 Carver Street
- $1,310,000 Sale – 1741 Dixon Street
Now, let’s see how the market has stepped up into 2020…
2020 Example Sales
- $1,330,000 Sale – 1203 Stanford Avenue
- $1,376,500 Sale – 1616 Haynes Lane
- $1,401,500 Sale – 1741 Havemeyer Lane
As you can see, the growth not only kept going, but it was also at its strongest over the four-year period.
- 2017: High $1.1 million range
- 2018: Low to mid $1.2 million range
- 2019: High $1.2 to low $1.3 million range
- 2020: Mid $1.3 to low $1.4 million range
Since 2017, we have seen prices move up around a quarter of a million dollars with the pandemic market accelerating prices another $100,000, which shows you just how resilient this market really is.
Commentary/Conclusion
My 2019 blog post shared charts on 3-year data and long-term data.
It covered median sales price and months’ supply/days on market. In today’s current market, you can probably guess the story of 2020 into 2021.
Tall & skinny homes are hitting record median prices, they are selling in a week, and there is only one home on the market in the 1,700 – 1,900 square foot range…and it is in rough shape and in a tough location. So, inventory is virtually zero.
The Golden Hills tall & skinny market has the wind at its back, a fortuitous wind that has been blowing for over a decade now. And, there are absolutely no signs of it slowing down. In fact, if interest rates stay low, then an even greater acceleration of prices higher is not farfetched for this North Redondo enclave.